Chicago Flip is almost complete, 2 options to BRRRR the funds

[Jacques Ikolo]

Hello All,

I am investing OOS, finishing a flip in Chicago. I have some ideas on what to do with the money but I'm conflicted with which the best idea. My main goal is cash flow, so by reading this you can tell where I'm leaning towards, but is that the best idea? The flip will net me about $70k, and also have about $50k in LOC that will be available. My two scenarios are: 1) Keep investing in Chicago, where there are plenty of small multifamily properties and I can start the BRRRR strategy, with multi-units. 2) Start investing near where I live, with more single family (not a lot of multifamily in the area) but BRRRR strategy also. There is a big development going on and house prices are fairly cheap and will definitely go up along with rent in the area.

1) Chicago price range will be about $100-125k purchase price and ~ $50-70k rehab (MF)

2) closer to home will be about $80-100K purchase and ~ $20-50k rehab (SF)

So to sum it up, I can do cheaper SF properties and cheaper rehab closer to home with an upward trending area due to the development or I can do small MF properties with a little more expensive rehab and purchase but more units and potentially more cashflow. 

Thanks in advance.